Takeshi Kamada, a foreign exchange trader at Credit Suisse $($Tokyo$),$ is exploring covered interest arbitrage possibilities. He wants to invest $$5,000,000$ or its yen equivalent, in a covered interest arbitrage between U$.$S$.$ dollars and Japanese yen. He faced the following exchange rate and interest rate quotes.

Arbitrage funds available $$5,000,000$ or its Yen equivalent

Spot rate $/$$ $118\mathrm{.}60$

$360$ day Forward rate $/$$ $117\mathrm{.}80$

U$.$S$.$ dollar annual interest rate $2\mathrm{.}4\%$

Japanese yen annual interest rate $1\mathrm{.}7\%$

How can he make a CIA profit?

A$.$ By borrowing yen and investing in dollars

B$.$ By borrowing dollars and investing in yen

C$.$ CIA profit is not possible in this case